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Common Questions About Financing Senior Living

If you are like most families, you have lots of questions about paying for assisted living. We thought it would be helpful to answer a few of the questions we hear most often.

 

How can I pay for assisted living?

  • Bridge Loans – If your family has decided to sell your senior loved one’s home to pay for senior living, a short-term bridge loan can help.
  • Rent the Home – If your senior loved one isn’t ready to let go of their home, consider renting it. Rental payments can help cover the cost of senior living. An upside to rental is you don’t have to deal with selling the home before or during transitioning to a senior living facility.
  • Veterans’ Programs – If you receive a VA pension you may be eligible to receive benefits to help pay for assisted living. Contact the U.S. Department of Veterans Affairs and ask about the details of the “Aid and Attendance Program” 

 

Can we use a life insurance policy to pay for senior living?

Yes if you can take advantage of a “Life Settlement” program. There are several advantages to this program, however be aware:

  • This may disqualify you for Medicaid
  • The death benefit is transferred to the new owner of the policy
  • The settlement can be taxed as a capital gain
  • You may pay a broker fee (6% of the face value of the policy unless you try to sell it yourself
  • Your senior loved one may have to undergo a medical exam

 

Does Long-Term Care Insurance cover assisted living?

Long-Term Care insurance policies cover people who have chronic conditions or disabilities requiring them to seek help for the basics of daily living. Policies differ but may help pay for care at home, in an assisted living community, or in a long term care center. Be aware:

  • Many policies have limits on how long and how much they’ll pay
  • Premiums may increase
  • If you become unable to pay the premiums, you could lose your investment
  • Coverage is based on strict requirements for the assisted living community

 

Does Medicare pay for assisted living?

No. Medicare is a healthcare program, it only covers services determined to be medical in nature. A rehab center, a hospital stay or a physician appointment are examples of services covered by Medicare.

 

See Assisted Living Facilities in Jacksonville, Orange Park, Ponte Vedra and St. Augustine

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  • Jacksonville, Florida 32250
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